IMO this encryption can be interpretated as "you are supposed pay to view this channel". They could have foregone encryption with just a flag except that it would be trivial for any Aliexpress atsc hdmi dongle to simply forget that about that flag.
That being said yeah they probably require hdcp which.. Well you can find HDMI splitter (that goes from 4k to 4k on hdmi1 and 1080p on hdmi2) that "simply forget" about hdcp 1&2. (no idea whether that's on purpose but that's not the reason I bought it in the first place)